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ROC

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 001-40908

 

MiNK Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

82-2142067

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

149 Fifth Avenue

Suite 500

New York, NY 

10010

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 212-994-8250

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.00001 per share

 

INKT

 

Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☐    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

☒ 

 

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

As of November 26, 2021, the registrant had 33,504,350 shares of common stock, $0.00001 par value per share, outstanding.

 

 

 

 


 

 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

1

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020

1

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2021 and 2020

2

 

Condensed Consolidated Statements of Stockholders’ Deficit for the three and nine months ended September 30, 2021 and 2020

3

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

11

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

16

Item 4.

Controls and Procedures

16

 

 

 

PART II.

OTHER INFORMATION

17

 

 

 

Item 1.

Legal Proceedings

17

Item 1A.

Risk Factors

17

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 6.

Exhibits

62

 

Signatures

63

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

2021

 

 

December 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

819,450

 

 

$

2,691,156

 

Prepaid expenses

 

 

13,228

 

 

 

492,060

 

Other current assets

 

 

2,608,870

 

 

 

913,578

 

Total current assets

 

 

3,441,548

 

 

 

4,096,794

 

Equipment, net of accumulated depreciation of $147,017 and $98,160 at

   September 30, 2021 and December 31, 2020, respectively

 

 

635,887

 

 

 

458,384

 

Total assets

 

$

4,077,435

 

 

$

4,555,178

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,648,155

 

 

$

3,141,844

 

Accrued liabilities

 

 

3,084,621

 

 

 

1,859,067

 

Other current liabilities

 

 

5,377,596

 

 

 

5,690,796

 

Convertible affiliated note, current

 

 

65,423,496

 

 

 

 

Due to related parties

 

 

5,027,095

 

 

 

3,530,589

 

Total current liabilities

 

 

80,560,963

 

 

 

14,222,296

 

Convertible affiliated note, non-current

 

 

 

 

 

43,824,000

 

Other long-term liabilities

 

 

27,543

 

 

 

383,058

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Common stock, par value $0.00001 per share; 35,000,000 shares authorized;

   24,219,058 and 24,177,313 shares issued at September 30, 2021

   and December 31, 2020, respectively

 

 

242

 

 

 

242

 

Additional paid-in capital

 

 

1,461,557

 

 

 

383,712

 

Accumulated other comprehensive loss

 

 

(789,336

)

 

 

(1,523,038

)

Accumulated deficit

 

 

(77,183,534

)

 

 

(52,735,092

)

Total stockholders’ deficit

 

 

(76,511,071

)

 

 

(53,874,176

)

Total liabilities and stockholders’ deficit

 

$

4,077,435

 

 

$

4,555,178

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

1


MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

3,334,126

 

 

$

2,503,942

 

 

$

10,016,449

 

 

$

8,721,233

 

General and administrative

 

 

814,881

 

 

 

466,861

 

 

 

2,277,759

 

 

 

1,596,081

 

Change in fair value of convertible affiliated note

 

 

9,227,427

 

 

 

2,953,242

 

 

 

9,702,863

 

 

 

2,795,329

 

Operating loss

 

 

(13,376,434

)

 

 

(5,924,045

)

 

 

(21,997,071

)

 

 

(13,112,643

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(881,323

)

 

 

(639,026

)

 

 

(2,430,067

)

 

 

(1,754,118

)

Gain on extinguishment of debt

 

 

355,515

 

 

 

 

 

 

355,515

 

 

 

 

Other income (expense), net

 

 

(364,844

)

 

 

519,878

 

 

 

(376,819

)

 

 

162,890

 

Net loss

 

$

(14,267,086

)

 

$

(6,043,193

)

 

$

(24,448,442

)

 

$

(14,703,871

)

Per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share

 

$

(0.59

)

 

$

(0.25

)

 

$

(1.01

)

 

$

(0.61

)

Weighted average number of common shares outstanding

 

 

24,205,446

 

 

 

24,120,669

 

 

 

24,186,794

 

 

 

24,092,235

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

$

546,111

 

 

$

(803,501

)

 

$

733,702

 

 

$

(353,168

)

Comprehensive loss

 

$

(13,720,975

)

 

$

(6,846,694

)

 

$

(23,714,740

)

 

$

(15,057,039

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

2


 

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Number of

Shares

 

 

Par

Value

 

 

Additional

Paid-In

Capital

 

 

Other

Comprehensive

Income (Loss)

 

 

Accumulated

Deficit

 

 

Total

 

Balance at December 31, 2020

 

 

24,177,313

 

 

$

242

 

 

$

383,712

 

 

$

(1,523,038

)

 

$

(52,735,092

)

 

 

(53,874,176

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,846,194

)

 

 

(3,846,194

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

353,305

 

 

 

 

 

 

353,305

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

263,081

 

 

 

 

 

 

 

 

 

263,081

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

19,949

 

 

 

 

 

 

 

 

 

19,949

 

Balance at March 31, 2021

 

 

24,177,313

 

 

$

242

 

 

$

666,742

 

 

$

(1,169,733

)

 

$

(56,581,286

)

 

$

(57,084,035

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,335,162

)

 

 

(6,335,162

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(165,714

)

 

 

 

 

 

(165,714

)

Grant and recognition of stock options

 

 

 

 

 

 

 

 

356,097

 

 

 

 

 

 

 

 

 

356,097

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

51,206

 

 

 

 

 

 

 

 

 

51,206

 

Balance at June 30, 2021

 

 

24,177,313

 

 

$

242

 

 

$

1,074,045

 

 

$

(1,335,447

)

 

$

(62,916,448

)

 

$

(63,177,608

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,267,086

)

 

 

(14,267,086

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

546,111

 

 

 

 

 

 

546,111

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

365,760

 

 

 

 

 

 

 

 

 

365,760

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

21,602

 

 

 

 

 

 

 

 

 

21,602

 

Option exercises

 

 

41,745

 

 

 

 

 

 

150

 

 

 

 

 

 

 

 

 

150

 

Balance at September 30, 2021

 

 

24,219,058

 

 

$

242

 

 

$

1,461,557

 

 

$

(789,336

)

 

$

(77,183,534

)

 

$

(76,511,071

)

 

3


 

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Number of

Shares

 

 

Par

Value

 

 

Additional

Paid-In

Capital

 

 

Other

Comprehensive

Income (Loss)

 

 

Accumulated

Deficit

 

 

Total

 

Balance at December 31, 2019

 

 

24,059,035

 

 

$

241

 

 

$

294,783

 

 

$

(132,590

)

 

$

(36,496,194

)

 

$

(36,333,760

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,392,547

)

 

 

(4,392,547

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

635,905

 

 

 

 

 

 

635,905

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

400

 

 

 

 

 

 

 

 

 

400

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

29,530

 

 

 

 

 

 

 

 

 

29,530

 

Option exercises

 

 

27,830

 

 

 

1

 

 

 

399

 

 

 

 

 

 

 

 

 

400

 

Balance at March 31, 2020

 

 

24,086,865

 

 

$

242

 

 

$

325,112

 

 

$

503,315

 

 

$

(40,888,741

)

 

$

(40,060,072

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,268,131

)

 

 

(4,268,131

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(185,571

)

 

 

 

 

 

(185,571

)

Grant and recognition of stock options

 

 

 

 

 

 

 

 

244

 

 

 

 

 

 

 

 

 

244

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

12,635

 

 

 

 

 

 

 

 

 

12,635

 

Option exercises

 

 

10,436

 

 

 

 

 

 

150

 

 

 

 

 

 

 

 

 

150

 

Balance at June 30, 2020

 

 

24,097,301

 

 

$

242

 

 

$

338,141

 

 

$

317,744

 

 

$

(45,156,872

)

 

$

(44,500,745

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,043,193

)

 

 

(6,043,193

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(803,502

)

 

 

 

 

 

(803,502

)

Grant and recognition of stock options

 

 

 

 

 

 

 

 

347

 

 

 

 

 

 

 

 

 

347

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

10,407

 

 

 

 

 

 

 

 

 

10,407

 

Option exercises

 

 

24,351

 

 

 

 

 

 

350

 

 

 

 

 

 

 

 

 

350

 

Balance at September 30, 2020

 

 

24,121,652

 

 

$

242

 

 

$

349,245

 

 

$

(485,758

)

 

$

(51,200,065

)

 

$

(51,336,336

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

4


MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(24,448,442

)

 

$

(14,703,871

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

54,126

 

 

 

38,923

 

Share-based compensation

 

 

1,077,695

 

 

 

53,563

 

Interest accrued on convertible affiliated note

 

 

2,430,067

 

 

 

1,754,118

 

Gain on extinguishment of debt

 

 

(355,515

)

 

 

 

Change in fair value of convertible affiliated note

 

 

9,702,863

 

 

 

2,795,329

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

477,755

 

 

 

(102,398

)

Accounts payable

 

 

(1,504,911

)

 

 

1,796,245

 

Accrued liabilities and other current liabilities

 

 

1,224,729

 

 

 

(1,195,487

)

Repayable advance received

 

 

 

 

 

1,774,788

 

Other operating assets and liabilities

 

 

216,799

 

 

 

1,168,711

 

Net cash used in operating activities

 

 

(11,124,834

)

 

 

(6,620,079

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of plant and equipment

 

 

(249,260

)

 

 

(95,212

)

Net cash used in investing activities

 

 

(249,260

)

 

 

(95,212

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from option exercises

 

 

150

 

 

 

900

 

Proceeds from the issuance of long-term debt

 

 

 

 

 

355,515

 

Proceeds from issuance of convertible affiliated note

 

 

9,459,422

 

 

 

7,415,150

 

Net cash provided by financing activities

 

 

9,459,572

 

 

 

7,771,565

 

Effect of exchange rate changes on cash

 

 

42,816

 

 

 

(68,274

)

Net (decrease) increase in cash

 

 

(1,871,706

)

 

 

988,000

 

Cash, beginning of period

 

 

2,691,156

 

 

 

299,036

 

Cash, end of period

 

$

819,450

 

 

$

1,287,036

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


MINK THERAPEUTICS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Description of Business

MiNK Therapeutics, Inc. (MiNK or the Company) is a clinical stage biopharmaceutical company focused on developing allogeneic invariant natural killer T (iNKT) cell therapies to treat cancer and other life-threatening illnesses.

The Company has incurred losses since inception and, as of September 30, 2021, had an accumulated deficit of $77.2 million. Since inception until the completion of the Company’s initial public offering (see Note 13 to the Unaudited Interim Condensed Consolidated Financial Statements), the Company financed its operations primarily through funding from Agenus Inc. (Agenus), its parent company. MiNK expects to continue incurring operating losses and negative cash flows for the foreseeable future. Based on the Company’s current plans and projections, MiNK believes its quarter end cash balance, plus the proceeds received from its initial public offering, will be sufficient to satisfy its liquidity requirements for more than one year from when these financial statements were issued.

Management continually addresses the Company’s liquidity position and adjusts spending as needed in order to preserve liquidity. The Company’s future liquidity needs will be determined primarily by the success of its operations with respect to the progression of the Company’s product candidates and key development and regulatory events in the future. Potential sources of additional funding for the Company include: (1) pursuing collaboration, out-licensing and/or partnering opportunities for the Company’s portfolio programs and product candidates with one or more third parties, (2) securing additional debt financing and/or (3) selling equity securities.

MiNK’s product candidates are in various stages of development and significant additional expenditures will be required if the Company starts new trials, encounters delays in its programs, applies for regulatory approvals, continues development of its technologies, expands its operations, and/or brings its product candidates to market. The eventual total cost of each clinical trial is dependent on a number of factors such as trial design, length of the trial, number of clinical sites, and number of patients. The process of obtaining and maintaining regulatory approvals for new therapeutic products is lengthy, expensive, and uncertain. Because all of the Company’s programs are at an early stage of clinical development, the Company is unable to reliably estimate the cost of completing its research and development programs or the timing for bringing such programs to various markets or substantial partnering or out-licensing arrangements, and, therefore, when, if ever, material cash inflows are likely to commence.

(2) Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the years ended December 31, 2020 and 2019 (annual financial statements), included in the Company’s Amended Registration Statement on Form S-1 filed with the Securities and Exchange Commission (SEC) on October 12, 2021. Since the date of those financial statements, there have been no changes to the Company’s significant accounting policies.

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual consolidated financial statements. In the opinion of the Company’s management, the condensed consolidated financial statements include all normal and recurring adjustments considered necessary for a fair presentation of the Company’s financial position and operating results. All significant intercompany transactions and accounts have been eliminated in consolidation. Operating results for the nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that it believes to be reasonable under the circumstances. Actual results could differ materially from those estimates.

For the Company’s foreign subsidiaries, the local currency is the functional currency. Assets and liabilities of its foreign subsidiaries are translated into U.S. dollars using rates in effect at the balance sheet date while expenses are translated into U.S. dollars using average exchange rates during the period. The cumulative translation adjustment resulting from changes in exchange rates are included in the condensed consolidated balance sheets as a component of accumulated other comprehensive loss in total stockholders’ deficit.

6


(3) Net Loss Per Share

Basic income and loss per common share is calculated by dividing the net loss by the weighted average number of common shares outstanding. Diluted income per common share is calculated by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding instruments such as stock options. Because the Company reported a net loss for all periods presented, diluted loss per common share is the same as basic loss per common share, as the effect of utilizing the fully diluted share count would have reduced the net loss per common share. Therefore, the following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of September 30, 2021 and 2020, as they would be anti-dilutive:

 

 

 

Three and Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Stock options

 

 

4,911,263

 

 

 

2,713,425

 

Non-vested shares

 

 

695,750

 

 

 

 

 

(4) Other Current Assets

Other current assets consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):

 

 

 

September 30,

2021

 

 

December 31,

2020

 

VAT receivable

 

$

35

 

 

$

20

 

Insurance recovery

 

 

 

 

 

234

 

Deferred offering costs

 

 

2,563

 

 

 

539

 

Other

 

 

11

 

 

 

121

 

Total

 

$

2,609

 

 

$

914

 

 

(5) Accrued and Other Current Liabilities

Accrued liabilities consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):

 

 

 

September 30,

2021

 

 

December 31,

2020

 

Payroll

 

$

360

 

 

$

240

 

Professional fees

 

 

1,820

 

 

 

1,186

 

Research services

 

 

905

 

 

 

66

 

VAT

 

 

 

 

 

324

 

Other

 

 

 

 

 

43

 

Total

 

$

3,085

 

 

$

1,859

 

 

Other current liabilities of $5.4 million and $5.7 million as of September 30, 2021 and December 31, 2020, respectively, consisted entirely of the repayable advance received under the Company’s research and development agreement with the Belgium Walloon Region Government. During 2020, the Company discontinued research efforts related to this program and is evaluating its options in accordance with the terms of the agreement.

(6) Share-based Compensation Plans

The Company’s 2018 Equity Incentive Plan provided for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code, nonstatutory stock options, restricted stock, unrestricted stock and other equity-based awards, such as stock appreciation rights, and stock units including restricted stock units for up to 13,915,000 shares of the Company’s common stock (subject to adjustment in the event of stock splits and other similar events).

In September 2021, the Company’s stockholders approved the 2021 Equity Incentive Plan (2021 Plan). The 2021 Plan provides for the granting of equity-based awards to the Company’s employees, directors and consultants. The provisions of the plan allow for automatic annual increases for the shares reserved under the 2021 Plan.

In September 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (2021 ESPP). The 2021 ESPP initially provides for the issuance of up to 375,000 shares of common stock to employees. The provisions of the 2021 ESPP provide for automatic annual increases for shares reserved under the 2021 ESPP.

7


The Company primarily uses the Black-Scholes option pricing model to value options granted to employees and non-employees, as well as options granted to members of the Company’s Board of Directors. All stock option grants have 10-year terms and generally vest ratably over a 3 or 4-year period.

A summary of option activity for the nine-month period ended September 30, 2021 is presented below:

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

 

Aggregate

Intrinsic

Value

 

Outstanding at December 31, 2020

 

 

2,713,425

 

 

$

0.01

 

 

 

 

 

 

 

 

 

Granted

 

 

2,239,583

 

 

 

3.03

 

 

 

 

 

 

 

 

 

Exercised

 

 

(41,745

)

 

 

0.01

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2021

 

 

4,911,263

 

 

$

1.38

 

 

 

8.7

 

 

$

8,076,285

 

Vested or expected to vest at September 30, 2021

 

 

4,911,263

 

 

$

1.38

 

 

 

8.7

 

 

$

8,076,285

 

Exercisable at September 30, 2021

 

 

1,469,656

 

 

$

0.09

 

 

 

8.1

 

 

$

4,451,743

 

 

The weighted average grant-date fair values of options granted during the nine-month period ended September 30, 2021 was $1.76. During the nine-month period ended September 30, 2021, all options were granted with exercise prices equal to the market value of the underlying shares of common stock on the grant date.

As of September 30, 2021, there was $3.0 million of unrecognized share-based compensation expense related to these stock options which, if all milestones are achieved, will be recognized over a weighted average period of 2.4 years.

A summary of non-vested stock activity for the nine-month period ended September 30, 2021 is presented below: